Finance

Are Chinese Stocks Doomed? Should You Invest?

are-chinese-stocks-doomed-should-you-invest



Should you invest in Chinese stocks? If you own shares of Alibaba and other companies like Nio or Baidu, should you sell? Will these stocks be delisted and what happens to your investment when that happens?

In today’s livestream, I’ll cover the recent stock market news around The Holding Foreign Companies Accountable Act passed by the U.S. Congress and on its way to be signed by the President. The Act requires all foreign companies, but specifically Chinese companies, to be accountable to the same auditing standards as U.S. companies if they want to stay listed on the U.S. stock markets.

The Act gives companies three years to comply with the requirements or the stocks will be delisted from the U.S. market. The news sent shares of Chinese stocks like Alibaba and Nio down but only marginally. The fact that companies still have three years to comply and there are several other loopholes that could make this more new than actual investor risk.

First, many of the larger Chinese companies are already audited by U.S. firms or those in compliance with PCAOB standards. It’s also likely that China would allow some form of compliance over the next three years for companies to keep their U.S. stock market listing. There could be a few in danger though, specifically companies held closely by the government or those in the national interest like energy companies and financials.

If you’re investing in Nio stock or any of the other chinese stocks, watch this video before you make any investing decisions.

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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.

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Robert Dunfee

45 Comments

  1. Let's Talk Money! with Joseph Hogue, CFA
    July 22, 2021 at 2:26 pm

    Still time to get your 4 FREE stocks from Webull! Support the channel and get an instant return 💰 https://mystockmarketbasics.com/webull

  2. Kimmberrlee Ohthatsme
    July 22, 2021 at 2:26 pm

    Too many ads, impossible to trust what's being said.

  3. Galawanji Youssef Radu
    July 22, 2021 at 2:26 pm

    Your opinion on this china penny stock, QD pls!

  4. Skiller189X
    July 22, 2021 at 2:26 pm

    I just heard today on Fox Business (31 December) that China Mobile (CHL) is going to be delisted. I hope I misunderstood or got that wrong!

  5. AjitB07
    July 22, 2021 at 2:26 pm

    I tend not to invest in my sworn enemies,

  6. Sid Medina
    July 22, 2021 at 2:26 pm

    I think NIO is going overboard in cooperating with U.S.

  7. Robert Dyas
    July 22, 2021 at 2:26 pm

    Rob in ky

  8. ball- zauberer
    July 22, 2021 at 2:26 pm

    What do you think About China Mobile? PER 7 / Div. 7% ? Wait until downturn is stopped?

  9. Rico Nathan
    July 22, 2021 at 2:26 pm

    Seriously For real bitcoin is a life changing business which can change anyone.

  10. Ana Smith
    July 22, 2021 at 2:26 pm

    What do you think about BILI?

  11. fernando2980
    July 22, 2021 at 2:26 pm

    Does Brazil have 1milllion muslims in re-education camps???

  12. MrSlyxx
    July 22, 2021 at 2:26 pm

    I sold out of my NIO after 3xing my money. I still love the company, and actually think it could keep going up. However, I sold out because I don't want to deal with the negative stigma of the devaluing of "other" Chinese companies. It often negatively affects the others, and the burden of proving that your particular stock is A. O-kay often falls on you. SO many things are subject to opinion, and perception. Too much added roller coaster for me. Not saying it isn't a good stock, just reducing the worry for myself.

  13. Alay Patel
    July 22, 2021 at 2:26 pm

    What do you think about owning CEO? It looks dirt cheap for an upstream company

  14. Alex Samuel
    July 22, 2021 at 2:26 pm

    Your picks are real gems..thanks for CRNC, CLSK, FSLY, CRSP, NTLA, PLUG, VERI…i did good !

    Keep drinking that Budweiser! And keep those recommendations coming…Thank you and a double 👍 .

  15. ssjj005
    July 22, 2021 at 2:26 pm

    I would say JD is the Chinese AMZN.

  16. jonathan kwo
    July 22, 2021 at 2:26 pm

    Fair, insightful analysis 👍

  17. Ar On
    July 22, 2021 at 2:26 pm

    Can you take a look at BFT 🧿it’s going up
    Merging with PaySafe
    Is that similar to square?

  18. S G
    July 22, 2021 at 2:26 pm

    agree on BABA fact own it plus NIO ,BYDDF

  19. Erika k
    July 22, 2021 at 2:26 pm

    Too many ads

  20. Kay Kim
    July 22, 2021 at 2:26 pm

    China it’s communist and they control all the companies. That is real !

  21. Kay Kim
    July 22, 2021 at 2:26 pm

    US should let Chinese companies to listed at the first place ! Why the rules are more flexible for China only ?! Chinese must follow our rules !! Their rules works for China only .

  22. East Coast Carpenter of Alaska
    July 22, 2021 at 2:26 pm

    What the resorce is best way to asses company's involved in shipping, looking for the most undervalued

  23. Sean L
    July 22, 2021 at 2:26 pm

    Hi! Joseph, could you please make
    a video in stocks for long term investment(Roth IRÁ, etc). Thanks in advance.
    Ps. I really enjoy your videos, and I am learning a lot. Much appreciated

  24. Dimitar Vasilev
    July 22, 2021 at 2:26 pm

    Thanks for answering my question! I asked it just once and waited patiently. You really make sure no one is left behind.

  25. Zipprich Carolyn
    July 22, 2021 at 2:26 pm

    EV stocks and cryptos are like the fastest growing stocks right now. take a look at TSLA and NIO. I have made good from the both of them. However most of us tend to pay more attention to the shiniest positions in the market to the cost of proper diversification. Having monitored my portfolio performance which has made a jaw dropping $350k from just the past two quarters alone, I have learned why experienced traders make enormous returns from the seemingly unknown markets. diversification is key

  26. Bubba Blackmon
    July 22, 2021 at 2:26 pm

    I own a substantial amount of BABA but don't understand the 11 times earnings. Closing price Friday was $267.25. Earnings for 2021 expected to be $10.34 per share for 2021 according to Yahoo. That's aPE of 25.8 .

  27. Investogator
    July 22, 2021 at 2:26 pm

    Natural Gas – EIA Weekly Update #5

  28. Joseph Andersen
    July 22, 2021 at 2:26 pm

    NIO is a smart buy at this price $42

  29. Anwar PM
    July 22, 2021 at 2:26 pm

    Are you sure about Alibaba PE is 11. I am seeing Price/Earnings (TTM)36.00x from TD Ameritrade

  30. Net Giant
    July 22, 2021 at 2:26 pm

    Most large cap Chinese companies in US exchanges like Ali Baba, Nio, Xpeng are already audited regularly by PCAOB approved firms like PWC. This bill most likely won’t affect them much.

  31. Nelly Frittata
    July 22, 2021 at 2:26 pm

    Any thoughts on Ehang?

  32. The Popcast
    July 22, 2021 at 2:26 pm

    China has absolute control over it's companies and it's people. Not saying you shouldn't invest, but comparing China to Brazil after seeing what they did to Hong Kong, man made islands in shipping lanes and a military build up unparalleled by any other nation in the world. Just take a look at how they lock up any person in china who speaks out against the government. There are a lot of people with influence in china that have just disappeared. Love your channel and thoughts though 🙂

  33. SG VM
    July 22, 2021 at 2:26 pm

    Love your videos.
    I missed on NIO, do you think any other Chinese stocks have the same potential as NIO, CBAT or XPEV, please list few Chinese penny stocks.
    Thank you 🙏🏼

  34. Samson Lee
    July 22, 2021 at 2:26 pm

    I live in Hong Kong and the CCP taking away people's freedom is as real as it gets and happening as we were watching this video. The world's supposedly largest IPO – Ants Financials' IPO was halted one day before launch because the owner/founder Jack Ma said something wrong about the CCP. That just shows the CCP wants complete manipulation over its people, even if you are the richest man in China.

    With that said, as investors, I believe we should understand CCP is different from Chinese people/companies and invest only in open Chinese companies (those that accepts 3rd party auditors) and whose who interact and contribute to the world fairly.

  35. N&N Transport Xprs
    July 22, 2021 at 2:26 pm

    Thank you for giving this discourse about China. I feel it more moderate than others, and for sharing your ideas on and their influence on their companies. I feel China is as a threaten power rather than a cooperative power. It helps me a bit to try to analyze China more moderately. I think that's better for commerce. I hold some BABA stocks. Thanks. We just need this trustworthy that they are showing right numbers.

  36. Fred Frond
    July 22, 2021 at 2:26 pm

    Thank you for the valuable information regarding which companies the audits will affect.

  37. Hanqi C
    July 22, 2021 at 2:26 pm

    thank you from Chicago ! Would love to see your best penny stock picks, CLSK is a great one

  38. Sagarika Poosa
    July 22, 2021 at 2:26 pm

    DUO make a video please

  39. Sagarika Poosa
    July 22, 2021 at 2:26 pm

    DUO? Going up or funeral? I lost $5000

  40. 81Awil
    July 22, 2021 at 2:26 pm

    In a past video you talked about China Mobile CHL. With a 6.6% dividend and an under 7 P/E ratio it looks like a solid buy. I’m kind of surprised you didn’t mention it.

  41. Mr. Monitor
    July 22, 2021 at 2:26 pm

    Nio is a buy if it drops at all from here. Don't get left out.

  42. CrazyLegs Gaming
    July 22, 2021 at 2:26 pm

    Can you please make a video on MP.

  43. stock whisper
    July 22, 2021 at 2:26 pm

    I open account and my name and my children's name so I received a bunch of stocks!

  44. Michael Day
    July 22, 2021 at 2:26 pm

    Am I going to be required to selloff FXI due to the executive order signed by Trump a few weeks ago? I already liquidated CHL.

  45. Shawn
    July 22, 2021 at 2:26 pm

    I applaud you Mr.Hogue. I'm not a communist but I'm also not a far right nut case Mccarthyite. Thank you for being fair, balanced, truthful, and scientific. Consider me a Bow Tie Citizen from here on out. Thank you again sir.